March 20 (Reuters) – A Russian court on Monday froze all Volkswagen ( VOWG_p. DE) properties in Russia, in the current challenge to the German carmaker’s year-long efforts to unwind its Russian operations.
Volkswagen, in addition to other foreign carmakers, suspended operations in Russia in 2015 after western nations enforced extraordinary sanctions on Moscow over the dispute in Ukraine.
It has actually been attempting to offer its Russian possessions, including its flagship plant in the city of Kaluga, which has production capability of 225,000 cars a year and has actually been furloughed because March 2022.
Russian car producer GAZ, which was contracted to produce Volkswagen lorries at its factory in Nizhny Novgorod, looked for to stop any sale as part of a claim after Volkswagen ended the production arrangement in August.
In court filings, GAZ stated Volkswagen’s efforts to leave the Russian market put its own interests at danger and it is looking for 15.6 billion roubles ($2013 million) in damages over the ended agreement.
A Russian court on Monday consented to freeze all of Volkswagen’s possessions in Russia while the disagreement with GAZ plays out, court files revealed, even more striking VW’s efforts to unwind its Russian operations.
Volkswagen’s Russian subsidiary stated it was shocked by the claim and their collaboration had actually “ended on mutually-agreed terms”.
” We understand the claim from GAZ and are acquainting ourselves with the case products,” it stated in a declaration to Reuters.
It likewise stated Volkswagen remained in the procedure of using to Russian state authorities for approval to offer its stake in Volkswagen Group Rus, consisting of a plant in Kaluga with more than 4,000 workers “to a credible Russian financier”.
” We hope the claim will not postpone the deal,” the declaration included.
GAZ decreased to comment. Russia’s market ministry did not react to demands to comment.
Previously today, Czech carmaker Skoda Vehicle, part of the Volkswagen Group, stated it remained in the lasts of an offer to offer its Russian properties.
EXIT PREPARES
Moscow requireds that business from “hostile” nations – those which have actually enforced sanctions on Russia – are needed to win approval from a federal government commission for the sale of any Russian possessions.
Foreign financiers have actually feared Russia might do something about it to nationalise tactical properties considering that the limitations on sales were generated.
Last July President Vladimir Putin provided a decree to take complete control of the Sakhlain-2 gas and oil job in Russia’s far east, efficiently taking nearly 50%of the task from Shell ( SHEL.L) and 2 Japanese trading business.
Other leading Western carmakers have actually left the Russian market. In 2015 France’s Renault ( RENA.PA) offered its bulk stake in Avtovaz to a Russian state entity for a symbolic charge of one rouble – successfully crossing out properties it formerly valued at 2.2 billion euros ($ 2.35 billion).
Russia’s car market has actually been among the worst struck by Moscow’s choice to send out 10s of countless soldiers into Ukraine in February in 2015.
Formerly reliant on Western financial investment, devices and parts, cars and truck production in 2015 fell by an unmatched 67% to its most affordable level because the collapse of the Soviet Union.
($ 1 = 77.5000 roubles)
($ 1 = 0.9356 euros)
Reporting by Gleb Stolyarov; Composing by Jake Cordell; Modifying by David Goodman, Louise Heavens and Barbara Lewis
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